Daily Investment Interpretations

September 14, 2010

2010-9-14 (Tuesday) The markets seesawed today, closing mixed with the NASDAQ Composite up slightly and the Dow and S&P 500 down slightly  The NASDAQ Composite racked up 4.06 points (0.18%) to 2,289.77 The Dow shrank 17.64 points (-0.17) to close  at 10,526.49, and the S&P 500 slipped 0.08 points (-0.07%) to end at 1,121.10. Oil slid slightly to $76.84 a barrel, while Gold leaped to $1,270. The VIX rose 0.35 to 21.56.
    Today's news was mixed. Retail sales rise in August and July business inventories rise 1%. The good news was that the rise in retail sales was greater than expected. The bad news was that a rise in inventories means that production will have to slow enough to work off the expanded inventories.
    Apparently, I was too quick to endorse The Sage of Omaha. My investment advisory service reminds us that Warren Buffett exhorted everyone to buy U. S. stocks in the fall of 2008, but warned against stocks when the markets bottomed in March, 2009. Is he a contrary indicator?
    Gold hits a record high Gold rises in anticipation of inflation or with a falling dollar or as a safety maneuver in times of financial crisis. So which of these caused today's run-up?
    Why stocks are likely heading higher. This article draws upon historical data to suggest that the markets will rise between now and the end of the year. 
    Paul Farrell's latest article is: 'Goldman Conspiracy' helps China beat U.S. His thesis is that in 30 years, China's GDP will be 3 times that of the U. S., and that the wrongdoings of our "banksters" will lead us to this state. (Similar projections were made for "Japan, Inc." back in the 70's and 80's, but they didn't materialize.)
    Banks can save the economy, just ask them. Marketwatch's Wall Street editor, David Weidner, recounts the banks' wringing of hands and gnashing of teeth at the prospect of having to rein in their "too-big-to-fail" risk-taking privileges.   
    Time for Thailand's stocks  
    Michael Ashbaugh writes: S&P 500 shows signs of life, faces next test. He says that the S&P must remain above 1,115 and must break above 1,131 to move out of its trading range.
    Several gurus agree that if the markets break out above their current trading ranges, it will be time to "pile on".
    Stock market futures are flat tonight.